Geography

California-size Paraguay is surrounded by Brazil, Bolivia, and
Argentina in south-central South America. Eastern Paraguay, between the
Paraná and Paraguay rivers, is upland country with the thickest population
settled on the grassy slope that inclines toward the Paraguay River. The
greater part of the Chaco region to the west is covered with marshes,
lagoons, dense forests, and jungles.

Government

Constitutional republic.

History

Indians speaking Guaraní—the most common language in Paraguay today,
after Spanish—were the country's first inhabitants. In 1526 and again in
1529, Sebastian Cabot explored Paraguay when he sailed up the Paraná and
Paraguay rivers. From 1608 until their expulsion from the Spanish
dominions in 1767, the Jesuits maintained an extensive establishment in
the south and east of Paraguay. In 1811, Paraguay revolted against Spanish
rule and became a nominal republic under two consuls.

Paraguay was governed by three dictators during the first 60 years of
independence. The third, Francisco López, waged war against Uruguay,
Brazil, and Argentina in 1865–1870, a conflict in which half the male
population was killed. A new constitution in 1870, designed to prevent
dictatorships and internal strife, failed to do so, and not until 1912 did
a period of comparative economic and political stability begin. The Chaco
War (1932–1935) with Bolivia won Paraguay more western territory.

After World War II, politics became particularly unstable. Alfredo
Stroessner was dictator from 1954 until 1989, during which he was accused
of the torture and murder of thousands of political opponents. Despite
Paraguay's human rights record, the U.S. continuously supported
Stroessner.

Stroessner was overthrown by army leader Gen. Andres Rodriguez in 1989.
Rodriguez went on to win Paraguay's first multicandidate election in
decades. Paraguay's new constitution went into effect in 1992. In 1993,
Juan Carlos Wasmosy, a wealthy businessman and the candidate of the
governing Colorado Party, won a five-year term in free elections.

Raúl Cubas Grau was elected president in May 1998. In 1999, Cubas was
forced from office for his alleged involvement in the assassination of
Vice President Luis María Argaña. The vice president had criticized Cubas
for refusing to jail his mentor, Gen. Lino Oviedo, who had been convicted
of leading a failed 1996 coup against Wasmosy. Oviedo was finally arrested
in 2004 and jailed.

Luis Ángel González Macchi, appointed caretaker president after Cubas
stepped down, was accused of mishandling $16 million in state funds, and
in 2006 he was sentenced to six years in prison. Former journalist Nicanor
Duarte Frutos became president on Aug. 15, 2003. He has pledged to clean
up the pervasive corruption in his nearly bankrupt country. Paraguay has
been in a protracted recession since the late 1990s.

On April 22, 2008, Fernando Lugo, a former Roman Catholic Bishop, was
elected president of Paraguay beating the Colorado Party's candidate,
Blanca Ovelar de Duarte, by 10 percentage points. Lugo's victory ended the
Colorado Party's 61 years in power—a system of bureaucracy and patronage
founded in 1887. Fernando Lugo was sworn in as president on Aug. 15,
2008.